What Is the Equal Pay Act?
The Equal Pay Act (EPA) of 1963 is a federal law that prohibits pay discrimination based on sex. It requires that men and women in the same establishment receive equal pay for equal work on jobs that require substantially equal skill, effort, and responsibility and that are performed under similar working conditions.
For HR professionals studying for the SHRM-CP or SHRM-SCP exam, the EPA is a focused but important compliance topic. It intersects with Title VII (which also prohibits sex-based pay discrimination) and is increasingly relevant as organizations face growing pressure to address pay equity proactively.
The EPA is part of the Fair Labor Standards Act and is enforced by the EEOC. Unlike Title VII, the EPA covers virtually all employers, with no minimum employee threshold, and does not require filing an EEOC charge before bringing a lawsuit.
The "Equal Work" Standard
The EPA does not require that jobs be identical, only that they be substantially equal. Courts evaluate equality based on four factors:
- Skill: The experience, training, education, and ability required to perform the job (measured by what is required, not what the individual employee possesses).
- Effort: The physical or mental exertion needed to perform the job.
- Responsibility: The degree of accountability or duty required in performing the job.
- Working conditions: The physical surroundings and hazards of the job, including factors such as temperature, fumes, ventilation, and risk of injury.
The comparison is based on actual job content, not job titles or descriptions. Two employees with different titles may be performing substantially equal work, while employees with the same title may have materially different responsibilities.
On the SHRM exam, be prepared to analyze scenarios where you must determine whether two positions involve "equal work" based on these four factors.
Affirmative Defenses
The EPA allows pay differentials between men and women performing equal work if the difference is based on one of four affirmative defenses:
- Seniority system: Pay differences based on length of service are permitted if the system is bona fide and applied consistently.
- Merit system: Pay differences based on documented performance evaluations or merit-based criteria are permitted.
- Quantity or quality of production: Pay differences based on measurable differences in output (such as piece-rate systems or sales commissions) are permitted.
- Factor other than sex: Pay differences based on any legitimate, job-related factor other than sex are permitted. Examples include differences in education, experience, geographic location, or market-rate adjustments. However, this defense is narrowly construed, and the factor must not itself be the result of sex-based pay discrimination.
The burden of proving one of these defenses falls on the employer. If the employer cannot demonstrate that a legitimate factor explains the pay difference, the EPA violation stands.
EPA vs. Title VII Pay Discrimination
Understanding the differences between EPA and Title VII pay discrimination claims is essential for the SHRM exam:
- Coverage: The EPA applies to virtually all employers; Title VII requires 15 or more employees.
- Protected class: The EPA addresses only sex-based pay discrimination; Title VII covers pay discrimination based on any protected characteristic.
- Comparison standard: The EPA requires substantially equal work; Title VII uses a broader "comparable work" standard in some circuits.
- Intent: The EPA does not require proof of intent to discriminate; Title VII generally does (unless using the disparate impact theory).
- Administrative exhaustion: The EPA does not require filing with the EEOC before suing; Title VII does.
- Remedies: The EPA provides for back pay, liquidated damages (double damages for willful violations), and attorney's fees. Title VII provides these plus compensatory and punitive damages.
Employees can bring claims under both the EPA and Title VII simultaneously, which allows them to take advantage of the broader protections and remedies available under each statute.
Start Practicing Today
Pay equity topics appear on the SHRM exam, which includes 134 questions over 4 hours at Prometric or OnVUE. Master the equal work standard, affirmative defenses, and the distinctions between the EPA and Title VII.
SHRMpractice.com provides practice questions on pay equity and compensation compliance. Start with a diagnostic to evaluate your preparation, and sign up for full access to our SHRM exam study tools.